Momentum Picks : Buy Data Patterns (India) Ltd For Target Rs. 3440-3530 - Axis Securities Ltd
Data Patterns (India) Ltd
Buy Data Patterns (India) Ltd CMP 3131 Range 3100-3040 Trend Reversal 2885 Gain 15%-18% Target 990 - 1010
* DATAPATTNS has delivered a decisive breakout above the key downward-sloping trendline at Rs 2,960 on the weekly chart, supported by a strong bullish candle and a meaningful surge in volume—signalling the potential for sustained upside.
* The stock is holding firmly above the breakout zone this week, indicating healthy follow-through buying and reinforcing the continuation of upward momentum.
* Strength is further confirmed by a breakout in the weekly RSI above its own downward-sloping trendline. Momentum indicators also support the bullish outlook, with the weekly RSI trending higher and sustaining above its reference line, reflecting a positive bias.
* Given this robust technical structure, DATAPATTNS appears well-positioned to extend its uptrend, with immediate upside targets placed at Rs 3,440 and Rs 3,530.
Technical Terminologies:
* Downward Sloping Trendline Breakout: A downward-sloping trendline breakout occurs when price moves above a declining resistance line that has been capping rallies, signalling a shift from selling pressure to renewed buying interest. This breakout typically marks the start of a potential trend reversal or acceleration in upward momentum, supported by increased volume or bullish follow-through.
* RSI: The Relative Strength Index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate whether the price of that security is overvalued or undervalued.
* RSI Breakout Above Its Downward Sloping Trendline: An RSI breakout above its downward-sloping trendline indicates a shift in momentum from weakness to strength, signalling improving buying pressure. This breakout often precedes or confirms a price reversal, adding conviction to the emerging bullish trend.
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